Restoration Hardware , a home-furnishings provider, surged as much as 16.78% to $144.40 a share Tuesday, after it reported better-than-expected third-quarter earnings.
After Monday's closing bell, the company posted adjusted earnings of $1.73 a share, crushing the $1.27 that was expected by Wall Street, according to Bloomberg data. Its top line came at $638.5 million, beat the consensus estimate of $631.6 million.
"We believe we can continue to gain share even if market conditions remain soft in higher end housing," said Restoration Hardware in a press release.
"While the luxury housing market has sequentially slowed throughout 2018, our revenues have sequentially accelerated, despite cycling inventory reduction efforts and managing the business with a bias for earnings versus revenue growth, clearly demonstrating our ability to gain market share."
RH added "As it relates to China tariffs, we have been working with our vendor partners on mitigation strategies and do not expect a material impact on our business outside of a modest increase to inventory levels due to the higher landed cost of the product."
Looking ahead, the company maintained its fiscal-year 2019 revenue forecast, saying it sees a range of between $2.72 billion and $2.82 billion, an increase of 8% to 12%. It expects its return on invested capital (ROIC) to be in excess of 50%, up from the previous estimate of 35%.
Restoration Hardware was up 57% this year.
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